Coles, Woolies Fail to Reply to ACCC Questions
The controversial leases in question are structured in a way that exclusively restrict the entry of another supermarket in the same shopping centre where Coles or Woolworths are a major tenant. If another supermarket retailer is introduced, then Coles or Woolworths receive a substantially discounted rent.
The ACCC’s report identified this lease structure as anti-competitive. The move to end these kind of leases has paved the way for Aldi, and Metcash, which supplies IGA stores, to open in centres where Coles or Woolworths previously enjoyed a monopoly.
